Residents from the Town of Mountain View authorized a $6,000,000 renovation to their historic town hall on November 15, 2016. Financing for the project consists of $2,400,000 from a 5 percent serial bond issue, $1,900,000 from a state grant, and $1,700,000 from the General Fund. Debt service for the serial bonds will be provided by a one-quarter-cent city sales tax imposed on every dollar of sales in the city. The town has a calendar year-end.

***Everything is right up until the very last transaction!

Transaction Fund credit General Journal Debit la. Record the 2017 budget for the Serial Debt Service Fund. $320,000 of sales taxes are expected to be collected in 2017; the only appropriation is expected to be six months of interest on the serial bond. a 320,000 Debt Service fund Estimated Revenues 60,000 Appropriations 260,000 Budgetary Fund Balance Capital Projects Fund No Journal Entry Required Governmental Activities No Journal Entry Required lb. The town transfers $1,700,000 from the General Fund to a newly established capital projects fund. b Debt Service fund No Journal Entry Required 1,700,000 Capital Projects Fund Cash 1,700,000 Other Financing Sources-Interfund Transfers In Governmental Activities No Journal Entry Required c. Planning and architect's fees for the town hall renovation are paid in the amount of $270,000. C No Journal Entry Required Debt Service fund Capital Projects Fund Construction Expenditures 270,000 270,000 Cash 270,000 Governmental Activities Construction Work in Progress Cash 270,000